The future of the non-life insurance industry will be shaped by a range of disruptive themes, with the internet of things (IoT) being one of the themes that will have a significant impact on non-life insurance companies.
IoT refers to a world where various devices are connected to the internet with a view to automating more of our lives, saving energy, and making industrial processes run more efficiently. The IoT is among the most disruptive technologies in the insurance sector. It has the potential to redefine the traditional insurance business model, shifting the focus from merely protection to prevention. Related gains include new revenue streams, claims/risk prevention, and a more intimate and connected relationship with customers. Through connectivity and constant engagement, insurers can act as a business partner, spreading the risk with their customer. Insurers can move from being a one-off contact during an unpleasant situation to providing regular advice to their clients on risk management and prevention. While investment in IoT can ultimately generate new tailored value propositions, it will require insurers to shape the right strategy and manage the increased risks. Vendors and managed service providers can offer total support in multiple technology contexts, and those with credentials in adjacent sectors can position themselves equally strongly on as-a-service transformation. The four most prominent areas in which IoT will impact insurance are: connected vehicles, smart homes, connected health, and connected commercial insurance.
However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.
According to GlobalData’s thematic research report, Internet of Things in Insurance, leading adopters of IoT in the non-life insurance sector include: Aetna, AIG, American Family Insurance, Aviva, AXA, Church Mutual, John Hancock, Metromile and Progressive.
Insight a from top ranked company
European insurance provider AXA has partnered with British Gas, which is offering its customers AXA home insurance policies. Hive is a smart heating system that allows users to control the temperature and hot water in their home from an application on their mobile device.
To further understand the key themes and technologies disrupting the insurance industry, access GlobalData’s latest thematic research report on Internet of Things in Insurance.
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- Root Insurance
- Marsh & McLennan
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- Next Insurance
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- Zurich Insurance
- Insurance Australia Group
- Arthur J Gallagher